- Ethereum price has formed an ascending triangle pattern, pointing to more gains.
- Spot Ethereum ETFs have added over $452 million this month.
- The total value locked (TVL) in the network has plunged sharply in the past few weeks.
Ethereum price remained inside a narrow range after retesting an important resistance level this month. The ETH token traded at $2,325 on Tuesday morning, with technicals suggesting it may stage a strong comeback in the coming days.
Ethereum Price Technical Analysis Suggests a Comeback is Coming
The daily timeframe chart shows that the ETH token has been in an uptrend over the past few weeks, rising from its year-to-date low of $1,720 to the current $2,315.
The coin has already moved above the 50-day Exponential Moving Average (EMA) and is attempting to cross the 100-day one.
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Most importantly, the pair has formed an ascending triangle pattern, which typically signals further gains. It is hovering near the upper side of the triangle pattern.
The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued rising.
Therefore, the most likely scenario is where the token continues rising, with the next target being the 38.2% Fibonacci retracement level at $2,960. A surge above that price will signal further gains, potentially to the 50% retracement at $3,340.
Ethereum ETF Demand Despite Key Headwinds
One potential reason for the upcoming ETH price rally is that American investors are continuing to accumulate the token.
Spot ETH ETFs have added assets in the last nine consecutive days, the longest winning streak in months. They have added over $452 million in assets this month, after shedding $46 million the previous month. They had seen outflows in the previous five consecutive months.
Spot Ethereum ETFs have seen cumulative net inflows of $12 billion and now hold $13.7 billion in assets, with BlackRock’s ETHA at $7.34 billion.
Still, Ethereum is facing major challenges, including a decline in total value locked (TVL) in its DeFi ecosystem following the recent KelpDAO hack.
Ethereum’s TVL has fallen from over $90 billion in August last year to $45 billion. Aave suffered the most losses due to its exposure to Kelp.
More data shows that Ethereum is not generating as much income as it did in the past. It has made just $11 million this month, far below the $1.83 billion it earned in November 2021.
The KelpDAO hack has also led to a sharp decline in the stablecoin market capitalization in the network.
Its stablecoin supply has dropped to $166 million from the year-to-date high of $185 billion. Ethena’s USDe market cap has also fallen by over 12% in the last 30 days to $4.25 billion.
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